Value Investing News

As we start a new year, this is the time that people make their resolutions. In addition the timeless resolutions of losing weight, quitting smoking, start exercising, et. al, some people are resolving to get their finances in order in case the economy turns down in 2012. Here is one more resolution may want to consider...

A vision is taking the time to contemplate and anticipate, in detail, what the future will bring. You can’t have a retirement plan until you have a retirement vision. It would seem to me that there are a lot or retirement plans out there but very few retirement visions.

Even hibernating bears know that bonds have essentially been dead money over the last year, or so. Interest rates are ridiculously low and not likely to improve any time soon given the anemic U.S. economy and European financial concerns. What's done is done, so what should we expect to earn from bonds in the future? Consider these two scenarios:

ong brand names, patent protection, regulatory approvals, and economies of scale are all key factors in the development and sustainability of a competitive advantage in the drug industry.

All income investors love a stock with a good yield. The smart ones look for dividends that are sustainable and likely to grow. The question is, 'In an uncertain world, how do you determine which dividends are sustainable and likely to grow?' Of coarse, there is no way to know with exact certainty which dividends are sustainable, but there are tell-tale signs that often foretell the future.

The S&P 500 Dividend Aristocrats is the most recognized list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. This index is a member of the S&P Dividend Aristocrats index series.

There is perceived safety in size. Giant corporations aren't randomly grown. Instead, they are carefully built through superior management and foresight. Often these are more mature companies that also offer stability and predictability, usually at the expense of dynamic growth. These are your mega-cap stocks.

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Buy and hold has gotten a bad name since the 2008 financial crisis and subsequent recession, but it is still a viable strategy for long-term investors with patience and the ability to pick the right stocks. Finding a financially strong, undervalued company with a durable competitive advantage in its industry, and a large dividend, makes a strong buy and hold candidate.

Abbott Laboratories is a diversified life science company that is a leading maker of drugs, nutritional products, diabetes monitoring devices, and diagnostics. In mid-October 2011, Abbott announced plans to split the company. Linked here is a detailed analysis and commentary.

The medical device industry faces industry-wide challenges of increased scrutiny by third party payers, regulatory headwinds, and intense competition from large players in the medical device market.

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A diverse product portfolio, innovative pipeline, geographic diversity, high-switching costs, and an inorganic growth strategy are crucial components of a durable competitive advantage in the medical device industry.

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I couldn't begin to estimate how many different stocks are traded around the world. Like everything else, there are many participants, but few players. Though the population of stocks may be large, there are only a precious few that are worthy dividend stocks. When spending my time looking for worthy investments, there are four primary places I look:

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Most investors aren't very good at investing. The formula for success in the market is relatively simple. Buy low, sell high. So why do so many people do so poorly? It seems they are doing the exact opposite of what they should be doing. If we can't trust our emotions, how can we succeed in the stock market and still sleep at night? Here is how to do it...

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in October, extending the streak to 16 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 45 of the last 47 months.

New income investors naturally focus on yield, but the highest yielding stocks aren't always the best investments. To find the very best dividend growth stocks an investor must identify companies that will not just sustain their dividends, but increase them every year. To find these jewels in the rough, there are two very important things the investor must look for.

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